Premier Wen Jiabao assured investors that Beijing’s active fiscal policy and loose monetary policy will continue, the Wall Street Journal reported. The assurance came after last week’s 4.4% drop in the Shanghai Composite Index, which had been on the rise for the previous seven weeks. The fall was fueled by concerns that some stimulus programs could be withdrawn. "The reason for us to maintain the current policies is that we are still facing many difficulties and uncertainties, including global economy outlook is still not clear, and external demands decline pressure is still relatively high," Wen said. Beijing is continuing to pursue stimulus policies despite what some see as the imminent threat of inflation and asset bubbles. Wen said the effects of some policies would weaken over time.